Self-managing your Laurel rental property may sound like a good idea initially.
However, what you may not realize when you get into the rental property business is how much work is involved, and how much money needs to go into properly managing every aspect of your tenant’s stay in your investment property.
Not understanding the true time and money commitment involved with managing rental properties can kill your rental property business before you even get started.
You may feel you are maximizing your profits by taking on everything yourself, and not paying a property management company to do it for you. However, by not outsourcing your property management tasks, you may actually be doing yourself a financial disservice and making things much worse, without even knowing it.
If you want to become a successful property owner, you might want to consider hiring a property management company to help you.
Their experience, professionalism, and expertise can save you loads of time and money, and actually garner you more profit in the end, without you having to work so hard.
How Investing in a Property Management Company in Laurel Will Save You Time and Money
1. Reduced Vacancy Rates
If your rental property has no tenants, you are not collecting any money.
That’s why reducing vacancy rates is something most property owners prioritize.
According to Brenton Hayden, founder and chairman of the board of Renters Warehouse, vacancies are often listed as the number one reason people give in and hire a property management company.
The time and money spent on advertising, tenant screening, placing tenants, and drafting lease agreements is much better spent on an experienced property manager that is familiar with the area your property is in, the market trends, and the demographics likely to lease from you.
Plus, a good property management company can get your property leased within a few days or weeks, as opposed to months, which is a hang-up inexperienced, self-managing property owners often deal with.
2. Legal Compliance
Imagine the time it will take you to learn every federal, state, and local landlord-tenant law.
Now, imagine hiring a property manager that already knows every rule and regulation related to leasing rental property.
That’s a lot of saved time.
In addition, by hiring a Laurel property manager that is up to date on all rental property legal compliance, you eliminate the risk of unknowingly breaking a law, and ending up in a landlord-tenant dispute.
Things such as rental property inspections, taxes, fair housing, and anti-discrimination laws are all covered when you employ a property manager to handle your rental property.
Not to mention the complex eviction procedures that self-managing rental property owners find themselves getting involved in from time to time – without a clue as to what to do.
By entrusting a property manager to handle the legal aspect of your rental property, you significantly reduce the chances of getting into a legal dispute that will result in a financial loss.
3. Higher Quality Tenants
Your property manager will have the resources to attract only the best tenants for your rental property.
This is because they understand the market, the need for thorough (and legally complaint) background checks and tenant screening processes, and they also know how to advertise available properties to those that are likely to be high paying quality tenants.
As a property owner with little experience marketing your rental, there is a good chance you will advertise on the wrong platforms (at higher costs than your property manager would), and possibly attract the wrong tenant pool.
In fact, you may not even know how to properly screen for tenants according to their ability to pay, which can have dire effects on your bottom line when halfway through a tenancy your tenant stops paying their rent.
Trust a property manager to handle these details for you.
Not only does this free you up to do other things, it relieves you of the pressure to find perfect tenants for your property that can pay the rent rate you “think” you deserve.
(Yes, your property manager can also help you set the right rent rate for your property so you receive the highest ROI possible.)
4. Maintenance and Repairs
When it comes to maintenance and repairs, many self-managing property owners feel they can tackle all complaints that will arise during their tenant’s tenancy.
Come to find out, however, many property owners don’t like midnight calls, have no idea how to handle most repairs on their own, and do not have a list of reliable contractors that are licensed and insured to perform timely, affordable, and quality work on their investment property.
All of this adds up to a huge waste of time, and an even bigger waste of money.
However, if you enlist the help of a reputable property management company that has a 24/7 maintenance crew on hand, suddenly all of these time and money problems disappear.
With the right property manager, you no longer have to answer tenant maintenance and repair requests, and you save money thanks to the Rolodex of contractors your property manager has on hand to handle any repair, no matter how serious.
5. Rent Collection Enforcement
Collecting rent from your tenants is how you make money.
However, what you may not realize is that collecting rent from your tenants can be challenging at times.
Even if you place the highest quality tenants in your property every single time, there is bound to be an issue or two with rent collection during your career as a rental property owner.
With a property manager on hand, you make rent collection easier in the following ways:
- The lease agreement, drafted by your property manager, will strictly outline everything rent collection related
- Your property manager will discuss with your new tenants the rent collection process so they thoroughly understand their obligations
- There will be convenient ways for your tenant to pay their monthly rent
- Any failure to pay rent on time will be met with swift consequences, again outlined in the lease and explained to your tenants
- The legal procedure for evicting non-paying tenants is understood by your property manager so there are no illegal proceedings you have to account for
- Your property manager will likely stand behind you in court if necessary, helping you to recover all costs related to a non-paying tenant
As you can see, having a knowledgeable property management company by your side to ensure you get paid, no matter what, is helpful in saving you time and money.
With the right property manager on your side, helping you with tasks like tenant placement, lease agreement drafting, rent collection, and maintenance, you will have time to focus on building your portfolio, taking that extra vacation, or focusing on your day job.
If you are looking for a Laurel property management company to help you save time and money in the long run, get in touch with Bay Management Group today.
With years of experience in the rental property industry, we take care of every little detail related to your rental property so you don’t have to. Avoiding one bad eviction process, one lost lawsuit, one major repair request, or one less vacancy, more than makes up for the cost of investing in a property manager.